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It takes more than a handshake to transfer ownership of real estate from one person to another. Each state has its own rules about these matters, to which you must adhere to make it happen. The deed is the core of the transaction as it's the legal document that transfers ownership. Pick the appropriate instrument and fill it out completely and accurately, and you are well on your way toward the property transfer.

Tip

Transfer real property using a deed. Sign the instrument before a notary and file it at the county recorder's office along with other appropriate paperwork required by your state.

Making Property Transfers

From contract to closing documents, there can be many steps to transferring ownership. When it's time for ownership to change hands, it's time to fill out, sign and notarize the deed. In California, the two kinds of instrument most frequently used are the grant deed and the quitclaim deed. However, there are several other types to consider.

Grant or Warranty Deed

This is the deed most commonly used for transactions on the open market or sales between strangers. You use a grant deed to either transfer property ownership or to add a name to a deed. The person signing the instrument is called the grantor. By executing a grant deed, the grantor guarantees that she owns the property and that the only liens or easements on the property are listed.

In some states, you use a warranty deed instead of a grant deed. The grantor in a warranty deed warrants" ownership. This means that she agrees to defend the buyer against any adverse claim. A warranty deed contains language like "conveys and warrants." A grant deed only conveys. It's important to do a title search before transferring using a warranty deed to head off any unexpected clouds on the title that could result in you having to defend the claim of the new owner.

Quitclaim Deed

A quitclaim deed does precisely that – lets you quit any interest you might have in a property. It doesn't guarantee that you have any, or that it is free of liens or other encumbrances. You're merely stepping back and ceding your interest to another party. You can also use it to correct errors in the title or change your name. This type of deed would be appropriate between family members or spouses where you are reasonably sure of the property's history.

California has variations on the quitclaim deed that contain unique verbiage that exempt the parties from extra tax expense. Both the interspousal deed and gift deed note that the transaction involves immediate family and no monetary consideration is involved.

Preparing the Deed

The grantee must decide how to take title to the property. A single person could take title as their sole and separate property, or choose to partner with someone as joint tenants with right of survivorship or tenants in common. Their co-owner would inherit their interest in the property upon their death in the first arrangement; in the latter, their share would pass to their heirs. Married couples have a similar choice to make when taking title as "community property." They can specify "with right of survivorship" for their spouse to inherit, or leave those words off to have it pass to their heirs – such as grown children from a previous marriage – instead of the spouse. They can also opt to take title as a married person as their sole and separate property.

Other things to include on the deed include the assessor's parcel number, the legal description of the property and the amount – if any – of transfer tax.

Recording the Deed

Once the deed is properly prepared and executed in front of a notary, it is legally valid. However, it must be filed with the county recorder. In California, you'll need to bring a few things besides the completed deed. Fill out a Preliminary Change of Ownership Report and file it along with the deed. If the transfer is from parent or grandparent to their legal child or grandchild, or between spouses, file a Reassessment Exclusion Claim to prevent property tax reassessment that can trigger higher taxes owed.

About the Author

From Alaska to California, from France's Basque Country to Mexico's Pacific Coast, Teo Spengler has dug the soil, planted seeds and helped trees, flowers and veggies thrive. A professional writer and consummate gardener, Spengler has written about home and garden for Gardening Know How, San Francisco Chronicle, Gardening Guide and Go Banking Rates. She earned a BA from U.C. Santa Cruz, a law degree from U.C. Berkeley's Boalt Hall, and an MA and MFA from San Francisco State. She currently divides her life between San Francisco and southwestern France.

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Spengler, Teo. (2018, December 04). How do I Transfer Ownership of a Real Estate Property? Home Guides | SF Gate. Retrieved from http://homeguides.sfgate.com/transfer-ownership-real-estate-property-2562.html

Spengler, Teo. "How do I Transfer Ownership of a Real Estate Property?" last modified December 04, 2018. http://homeguides.sfgate.com/transfer-ownership-real-estate-property-2562.html

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